Notes to Accounts of Dr. Sabharwal's Manufacturing Labs Ltd.

Mar 31, 2012

1. Contingent Liabilities:

i) In respect of Bank Guarantee Rs. NIL (Previous year Rs. NIL)

ii) Against pending sales tax cases Rs. NIL (Previous year Rs. NIL)

2. The company has provided depredation on all Fixed Assets on Straight line method in accordance with the provisions of section 205 (2) (b) and section 350 of the Companies Act, 1956 as amended by the companies (Amendment) Act. 1988 at the rates prescribed in schedule XIV of the said Act and as revised vide notification GS.R. 756 (E) dated 16.12.93 of Department of company affairs, Government of India and on prorate basis on additions during the year.

3. SEGMENT REPORTING: With reference to Accounting Standard 17 (AS-17) the company has one segment i.e. manufacture of Surgical Dressings.

4. Related Party Disclosures

Pursuant to Accounting Standard 18 (AS-18). The company has identified all related parties and details of transactions are given below:

1. Relationship

(a) Key management personnel and their relatives Dr. Ajit Rai Sabharwal., Mrs. Anjana Sabharwal.

(b) Other related Parties:

i. Ajit Rai Sabharwal HUF.

ii. Dr. Sabharwal''s Medicals Pvt. Ltd., Dr. Sabharwal''s Wound Care

5. Deferred Tax Liability

Pursuant to Accounting Standard (AS-22). Accounting for taxes on Income the company has revised its Deffered Tax Liability upto 31-03-2011. Further the impact of net deffered tax Liabilities of Rs. 139483.33for the year ended 31 st March 2012 has been debited to Profit & Loss Account.

In the opinion of board current assets. Loans & advances are approximately of the value stated and not in excess of the account considered reasonable.

Previous year''s figures have been regrouped / rearranged wherever necessary to render them comparable with current year''s figures.

Previous years figures : Till the year ended March 31,2011 the company was using pre-revised schedule Vi to the companies Act, 1956 for preparation and presentation of the financial statements. During the year ended March 31, 2012 the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the company, the company has reclassified previous year figures to confirm to this years classification.